Location: St. Louis, MO | Metro: St. Louis, MO-IL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,100 | $430,540 | 0.26% | F |
| 2BR | $1,350 | $210,680 | 0.64% | D |
| 3BR | $1,730 | $291,140 | 0.59% | F |
| 4BR | $2,000 | $370,556 | 0.54% | F |
| 5BR | $2,320 | $449,677 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 62294, located in Troy, Illinois, presents a unique balance between yield and stability that can be leveraged by both landlords and small-portfolio investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,130, which is notably lower than the market rent of $1,262. This suggests a slight premium for landlords who can secure tenants at the higher market rate. However, the median home value in the area is significantly higher at $324,048, indicating that while rental yields might be good, the capital appreciation potential could be limited.
Evaluating the stability of the market, we find that approximately 20.9% of residents are renters, which is relatively low compared to national averages. This percentage implies a smaller pool of potential tenants and could lead to increased competition among landlords. Additionally, the lack of available data on the number of days properties spend on the market (DOM) suggests either a stable market where properties are quickly rented or an underreported metric, which may indicate challenges in obtaining timely and accurate information.
The median household income in the area is $120,466, which is above the national average. This figure supports the notion that the local economy can sustain higher rents and that there is a solid financial base for tenants to pay their rent on time. However, the low percentage of renters could mean that finding and retaining tenants will require careful management and possibly higher vacancy rates.
Given these metrics, ZIP 62294 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The slightly below-market FMR of $1,130 compared to the actual market rent of $1,262 allows for a modest yield, but the higher median home value and the low percentage of renters suggest a market that is more stable and less prone to rapid fluctuations in demand. The strong median income provides assurance that tenants can afford the rent, contributing to the overall stability of the cash flow.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.